Operations
Management
PrOcesses and suPPly chains
Eleventh Edition
Global Edition
Lee J. KraJewsKi
Professor emeritus at
The Ohio state university
and the university of notre dame
ManoJ K. MaLhotra
university of south carolina
Larry P. ritzMan
Professor emeritus at
The Ohio state university and Boston college
Boston columbus indianapolis new
york san
Francisco
amsterdam cape
Town dubai london Madrid Milan Munich Paris Montreal Toronto
delhi Mexico
city sao
Paulo sydney hong
Kong seoul singapore Taipei Tokyo
Chains, Global Edition
Table of Contents
Cover
IFC
Title Page
Copyright Page
About the Authors
Brief Contents
Contents
Preface
Chapter 1 USING OPERATIONS TO CREATE VALUE
Disney
Role of Operations in an Organization
Historical Evolution and Perspectives
A Process View
How Processes Work
Nested Processes
Service and Manufacturing Processes
A Supply Chain View
Core Processes
Support Processes
Supply Chain Processes
Operations Strategy
Corporate Strategy
Market Analysis
Competitive Priorities and Capabilities
Order Winners and Qualifiers
Using Competitive Priorities: An Airline Example
Identifying Gaps between Competitive Priorities and Capabilities
Addressing the Trends and Challenges in Operations Management
Productivity Improvement
Global Competition
Managerial Practice 1.1 Japanese Earthquake and its Supply Chain Impact
Ethical, Workforce Diversity, and Environmental Issues
Designing and Operating Processes and Supply Chains
Adding Value with Process Innovation
Learning Goals in Review
MyoMlab Resources
Key Equations
Key Terms
Solved Problems
Discussion Questions
Problems
Active Model Exercise
Video Case using Operations to Create Value at Crayola
Case Theorganicgrocer.com
Supplement A Decision Making Models
Break-Even analysis
Evaluating Services or Products
Evaluating Processes
Preference Matrix
Decision theory
Decision Making under Certainty
Decision Making under Uncertainty
Decision Making under Risk
Decision trees
Learning Goals in review
MyoMlab Resources
Key Equations
Key Terms
Solved Problems
Problems
Part 1 Process Management
Chapter 2 PROCESS STRATEGY AND ANALYSIS
McDonalds Corporation
Process Structure in Services
Customer-Contact Matrix Service Process Structuring
Process Structure in Manufacturing
ProductProcess Matrix
Manufacturing Process Structuring Production and Inventory Strategies Layout
Process Strategy Decisions
Customer Involvement
Managerial Practice 2.1 customer involvement at eBay
Resource Flexibility Capital Intensity
Strategic Fit
Decision Patterns for Manufacturing Processes Gaining Focus
Strategies for Change
Process Reengineering Process Improvement Process Analysis
Documenting and Evaluating the Process
Flowcharts
Work Measurement Techniques Process Charts
Data Analysis Tools
Redesigning and Managing Process Improvements
Questioning and Brainstorming Benchmarking
Implementing
Learning Goals in review MyoMlab Resources Key Terms
Solved Problems Discussion Questions Problems
Active Model Exercise
Video Case Process Analysis at Starwood
Case Sims Metal Management
Case Josés Authentic Mexican Restaurant
Chapter 3 MANAGING QUALITY
QVC
Costs of Quality
Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs Ethical Failure Costs
Total Quality Management and Six Sigma
Total Quality Management
Managerial Practice 3.1 Quality at Verizon Wireless
Six Sigma
Acceptance Sampling
Statistical Process Control
Variation of outputs Control Charts
Control Charts for Variables Control Charts for Attributes
Process Capability
Using Continuous Improvement to Determine the Capability of a Process
International Quality Documentation Standards and awards
The ISo 9001:2008 Documentation Standards
The ISo 140001:2004 environmental Management System Benefits of ISo Certification
Benefits of the Baldrige Performance excellence Program
Learning Goals in review
MyoMlab Resources
Key Equations
Key Terms
Solved Problems
Discussion Questions
Problems
Active Model Exercise
Video Case Process Performance and Quality at Starwood Hotels & Resorts
Experiential Learning Statistical Process Control with a Coin Catapult
Chapter 4 PLANNING CAPACITY
Tesla Motors
Planning Long-term Capacity
Measures of Capacity and utilization Economies of Scale
Diseconomies of Scale
Capacity timing and Sizing Strategies
Sizing Capacity Cushions Timing and Sizing expansion
Managerial Practice 4.1 Expansionist Capacity Strategy by Sharp Corporation
Linking Capacity and other Decisions
A Systematic Approach to Long-Term Capacity Decisions
Step 1: Estimate Capacity Requirements Step 2: Identify Gaps
Step 3: Develop Alternatives Step 4: Evaluate the Alternatives
Tools for Capacity Planning
Waiting-Line Models Simulation
Decision Trees
Learning Goals in review
MyoMlab Resources
Key Equations
Key Terms
Solved Problems
Discussion Questions
Problems
Case Fitness Plus, Part A
Supplement B Waiting Line Models
Structure of Waiting-Line Problems
Customer Population The Service System Priority Rule
Probability Distributions Arrival Distribution Service Time Distribution
Using Waiting-Line Models to analyze Operations
Single-Server Model Multiple-Server Model Littles Law
Finite-Source Model
Waiting Lines and Simulation
SimQuick
Decision Areas for Management
Learning Goals in review MyoMlab Resources Key Equations Key Terms Solved Problem Problems
Chapter 5 MANAGING PROCESS CONSTRAINTS
British Petroleum Oil Spill in Gulf of Mexico
The Theory of Constraints
Key Principles of the TOC
Managing Bottlenecks in Service Processes
Managing Bottlenecks in Manufacturing Processes
Identifying Bottlenecks Relieving Bottlenecks Drum-Buffer-Rope Systems
Applying the Theory of Constraints to Product Mix Decisions
Managing Constraints in Line Processes
Line Balancing
Rebalancing the Assembly Line Managerial Considerations
Managerial Practice 5.1 Assembly Line Balancing at Chrysler
Learning Goals in Review MyoMlab Resources Key Equations Key Terms Solved Problems Discussion Questions Problems
Video Case Constraint Management at Southwest Airlines
Experiential Learning Min-yo Garment Company
Chapter 6 DESIGNING LEAN SYSTEMS
Aldi
Continuous Improvement Using a Lean Systems Approach
Strategic Characteristics of Lean Systems
Supply Chain Considerations in Lean Systems Process Considerations in Lean Systems Toyota Production System
Designing Lean System Layouts
One Worker, Multiple Machines Group Technology
Managerial Practice 6.1 Panasonic corporation
Value Stream Mapping
The Kanban System
General operating Rules
Determining the Number of Containers Other Kanban Signals
Operational Benefits and Implementation Issues
Organizational Considerations Process Considerations Inventory and Scheduling Learning Goals in review MyoMlab Resources Key Equation Key Terms Solved Problems Discussion Questions Problems
Case duraweld Ltd.
Video Case Lean Systems at Autoliv
Chapter 7 MANAGING EFFECTIVE PROJECTS
XBOX 360
Defining and Organizing Projects
Defining the Scope and objectives of a Project Selecting the Project Manager and Team Recognizing Organizational Structure
Constructing Project Networks
Defining the Work Breakdown Structure Diagramming the Network
Developing the Project Schedule
Critical Path Project Schedule Activity Slack
Cost to Crash Minimizing Costs
Assessing and Analyzing Risks
Risk-Management Plans
Managerial Plans 7.1 san FranciscoOakland Bay Bridge
Statistical Analysis Analyzing Probabilities Near-Critical Paths
Monitoring and Controlling Projects
Monitoring Project Status Monitoring Project Resources Controlling Projects
Learning Goals in review MyoMlab Resources Key Equations Key Terms Solved Problems Discussion Questions Problems
Active Model Exercise
Case The Pert Mustang
Video Case Project Management at the Phoenician
Part 2 Customer Demand Management
Chapter 8 FORECASTING DEMAND
Kimberly-Clark
Managing Demand
Demand Patterns
Demand Management Options
Key Decisions on Making Forecasts
Deciding What to Forecast
Choosing the Type of Forecasting Technique
Forecast Error
Cumulative Sum of Forecast Errors Dispersion of Forecast Errors Mean Absolute Percent Error Computer Support
Judgment Methods
Causal Methods: Linear Regression
Time-Series Methods
Naïve Forecast
Horizontal Patterns: Estimating the Average Trend Patterns: Using Regression
Seasonal Patterns: Using Seasonal Factors Criteria for Selecting Time-Series Methods
A Typical Forecasting Process Using Multiple Forecasting Methods
Managerial Practice 8.1 Combination Forecasts and the Forecasting Process
Adding Collaboration to the Process Forecasting as a Nested Process Learning Goals in review MyoMlab Resources Key Equations Key Terms Solved Problems Discussion Questions Problems
Video Case Forecasting and Supply Chain Management at Deckers Outdoor
Corporation
Case Yankee Fork and Hoe Company
Experiential Learning 8.1 Forecasting a Vital Energy Statistic
Chapter 9 MANAGING INVENTORIES
Inventory Management at Netflix
Inventory Trade-Offs
Pressures for Small Inventories Pressures for Large Inventories
Managerial Practice 9.1 inventory Management at Walmart
Types of Inventory
Accounting Inventories Operational Inventories
Inventory reduction tactics
Cycle Inventory Safety Stock Inventory Anticipation Inventory Pipeline Inventory
ABC analysis
Economic Order Quantity
Calculating the EOQ
Managerial Insights from the EOQ
Continuous Review System
Selecting the Reorder Point When Demand and Lead Time Are Constant
Selecting the Reorder Point When Demand Is Variable and Lead Time Is Constant Selecting the Reorder Point When Both Demand and Lead Time Are Variable Systems Based on the Q System
Calculating Total Q System Costs Advantages of the Q System
Periodic review System
Selecting the Time between Reviews
Selecting the Target Inventory Level When Demand Is Variable and Lead Time Is Constant
Systems Based on the P System Calculating Total P System Costs Advantages of the P System Learning Goals in Review MyoMlab Resources Key Equations Key Terms Solved Problems Discussion Questions Problems
Active Model Exercise
Video Case inventory Management at crayola
Experiential Learning swift electronic supply, inc.
Case Parts emporium
Supplement C Special Inventory Models
Noninstantaneous Replenishment
Quantity Discounts
One-Period Decisions
Learning Goals in review MyoMlab Resources Key Equations Key Term Solved Problems Problems
Chapter 10 PLANNING AND SCHEDULING OPERATIONS
Cooper Tire and Rubber Company
Levels in Operations Planning and Scheduling
Level 1: Sales and Operations Planning Level 2: Resource Planning
Level 3: Scheduling
S&OP Supply Options
S&OP Strategies
Chase Strategy Level Strategy Constraints and Costs
Sales and Operations Planning as a Process
Spreadsheets for Sales and Operations Planning
Spreadsheets for a Manufacturer Spreadsheets for a Service Provider
Scheduling
Job and Facility Scheduling Workforce Scheduling
Managerial Practice 10.1 Scheduling at Air New Zealand
Sequencing Jobs at a Workstation Software Support
Learning Goals in review MyoMlab Resources Key Terms Solved Problems Discussion Questions Problems
Active Model Exercise
Video Case Sales and Operations Planning at Starwood
Case Memorial Hospital
Supplement D Linear Programming Models
Characteristics of Linear Programming Models
Formulating a Linear Programming Model
Graphic Analysis
Plot the Constraints Identify the Feasible Region Plot the Objective Function Line Find the Visual Solution Find the Algebraic Solution Slack and Surplus Variables Sensitivity Analysis
Computer Analysis
Simplex Method Computer Output
The Transportation Method
Transportation Method for Sales and Operations Planning Learning Goals in Review
MyoMlab Resources Key Terms
Solved Problems Discussion Questions Problems
Chapter 11 EFFICIENT RESOURCE PLANNING
Philips
Material Requirements Planning
Dependent Demand
Master Production Scheduling
Developing a Master Production Schedule Available-to-Promise Quantities
Freezing the MPS
Reconciling the MPS with Sales and Operations Plans
MRP Explosion
Bill of Materials Inventory Record Planning Factors Outputs from MRP
MRP and the Environment
MRP, Core Processes, and Supply Chain Linkages
Enterprise Resource Planning
How ERP Systems Are Designed
Managerial Practice 11.1 ERP Implementation by SAP at DOW Corning
Resource Planning for Service Providers
Dependent Demand for Services Bill of Resources
Learning Goals in Review MyoMlab Resources Key Terms
Solved Problems Discussion Questions Problems
Active Model Exercise
Case Flashy Flashers, Inc.
Part 3 Supply chain Management
Chapter 12 DESIGNING EFFECTIVE SUPPLY CHAINS
Amazon.com
Creating an Effective Supply Chain
Supply Chains for Services and Manufacturing
Services Manufacturing
Measuring Supply Chain Performance
Inventory Measures Financial Measures
Strategic Options for Supply Chain Design
Efficient Supply Chains Responsive Supply Chains
Designs for efficient and Responsive Supply Chains
Mass Customization
Competitive Advantages
Supply Chain Design for Mass Customization
Outsourcing Processes
Managerial Practice 12.1 Building a Supply Chain for the Dreamliner
Vertical Integration Make-or-Buy Decisions Learning Goals in Review MyoMlab Resources Key Equations Key Terms Solved Problem Discussion Questions Problems
Experiential Learning Sonic Distributors
Case Brunswick Distribution, inc.
Chapter 13 SUPPLY CHAINS AND LOGISTICS
Bavarian Motor Works (BMW)
Factors Affecting Location Decisions
Dominant Factors in Manufacturing Dominant Factors in Services
LoadDistance Method
Distance Measures
Calculating a LoadDistance Score Center of Gravity
Break-Even Analysis
Transportation Method
Setting Up the Initial Tableau Dummy Plants or Warehouses Finding a Solution
Geographical Information Systems
Using GIS
Managerial Practice 13.1 How Fast-Food Chains Use Gis to Select Their Sites
The GIS Method for Locating Multiple Facilities
Inventory Placement
A Systematic Location Selection Process
Learning Goals in review MyoMlab Resources Key Equations Key Terms Solved Problems Discussion Questions Problems
Active Model Exercise
Video Case continental Tire: Pursuing a Winning Plant Decision
Case R.U. Reddie for Location
Chapter 14 INTEGRATING THE SUPPLY CHAIN
Coral Princess
Supply Chain Disruptions
Causes of Supply Chain Disruptions Supply Chain Dynamics
Integrated Supply Chains
New Services or Product Development Process
Design Analysis Development Full Launch
Supply Relationship Process
Design Collaboration Negotiation
Managerial Practice 14.1 The Consequences of Power in an Automotive Supply Chain
Buying
Information exchange
Order Fulfillment Process
Customer Demand Planning Supply Planning
Production Logistics
Customer Relationship Process
Marketing Order Placement Customer Service
Supply Chain Risk Management
Operational Risks Financial Risks Security Risks Performance Measures Learning Goals in review MyoMlab Resources Key Equations Key Terms Solved Problems Discussion Questions Problems
Video Case Sourcing Strategy at Starwood
Case HassiaWaters International
Chapter 15 MANAGING SUPPLY CHAIN SUSTAINABILITY
FedEx
The Three Elements of Supply Chain Sustainability
Reverse Logistics
Supply Chain Design for Reverse Logistics
Managerial Practice 15.1 Recycling at Walmart
Financial Implications
Energy Efficiency
Transportation Distance Freight Density Transportation Mode
Disaster relief Supply Chains
Organizing for Disaster Relief Managing Disaster Relief Operations
Supply Chain Ethics
BuyerSupplier Relationships Facility Location
Inventory Management
Managing Sustainable Supply Chains
Learning Goals in review MyoMlab Resources Key Equation Key Terms Solved Problems Discussion Questions Problems
Video Case Supply Chain Sustainability at Clif Bar & Company
Appendix Normal Distribution
References
Glossary
Name Index
Subject Index
IBC
